LatAm crude steel output surged 12% during Jan-May ‘17

SEATTLE (Scrap Monster): The most recent trade statistics released by the Latin American Iron and Steel Institute (ALACERO) indicates significant surge in crude steel and finished steel production by the region during the initial five months of 2017. The consumption of finished steel also reported year-on-year growth. The regional steel market recorded positive balance during this period.

The LatAm crude steel production surged higher by 12% during Jan-May ’17. The output totaled 26.4 million tonnes (Mt) when matched with the volume of 23.5 Mt in Jan-May ’16. Brazil was the region’s leading crude steel producer, accounting for 53% of the regional crude steel output. The output by the country totaled 14.1 Mt, rising sharply by 14% over the previous year. The finished steel output grew by 4% to total 21.7 Mt. The key producers of finished steel were Brazil (9.1 Mt) and Mexico (7.8 Mt). The combined output by these two countries accounted for nearly 78% of the regional finished steel output during Jan-May ’17.

Meantime, finished steel consumption went higher by 4% during the first five-month period in 2017, when compared with the corresponding period last year, said ALACERO trade data. The consumption totaled 27.4 Mt during this period in comparison with 26.3 Mt last year. Mexico recorded 6% jump in finished steel consumption. The other countries to record notable increases in consumption were Chile and Colombia (up by 3% each). On the other hand, Bolivia and Guatemala recorded 51% and 43% decline in finished steel consumption. The consumption in Argentina too recorded 9% fall during this period. The consumption of flat products totaled 15.8 Mt, accounting for 56% share of total finished steel consumption. The share of long products and seamless tubes stood at 42% and 2% respectively.

The region imported 9.6 Mt of finished steel during Jan-May ‘17. Out of this, 6.3 Mt were flat products, 3.0 Mt were long products and the remaining 239,000 mt were seamless tubes. The exports of finished steel by Latin America totaled 4.0 Mt, surging higher by 13% in comparison with the previous year. Of this, flat products totaled 2.0 Mt, long products accounted for 1.6 Mt and seamless tubes comprised of 391,000 mt.

The finished steel by the Latin American region reported net trade deficit of 5.6 Mt during the first five months of 2017. The only countries to maintain trade surplus were Brazil and Argentina. The trade surplus by these countries stood at 1.1 Mt and 81,000 tons respectively. Meantime, Mexico recorded the largest trade deficit of -2.4 Mt during the five-month period of the current year.